The sales of a company and the portion of revenue that remains after all the expenses are accounted for, known as the net profit are two of the most important metrics that an investor should look out for while investing in the company. Consistency in net profit implies that the company is growing.
Here are three stocks that have an average 5-year net profit margin of up to 57%:
Indian Energy Exchange
The shares of the Indian Energy Exchange shed a marginal 0.4 per cent and closed at Rs 160 on Thursday. In a month the stock has shed 3.5 per cent and so far this year it has shed approximately 37 per cent YTD.
The monopoly company has seen consistent growth in its Revenue and net profit. In FY22, their total revenue stood at Rs 431 crores up from Rs 317 crores in FY21. Their total net profit stood at Rs 307 crores up from Rs 205 crores in the year prior.
The average five-year net profit margin of the company is 57.47%. From 2018 to 2022 their net profit margins were 57.14%, 64.95%, 69.21%, 67.32%, and 71.08% respectively.
The Indian Energy Exchange (IEX) is an Indian electronic system-based power trading exchange regulated by the Central Electricity Regulatory Commission (CERC). The main activity of the company is to provide an automated platform and infrastructure for carrying out trading in electricity units for the physical delivery of electricity.
HDFC Asset Management Company
The shares of HDFC Asset Management shed 1.6 per cent and closed at Rs 2,041 on Thursday. In a month the stock has climbed by 1.5 per cent but so far this year it has shed approximately 17 per cent YTD.
The asset management company has maintained its revenue and net profit growth in line. Its revenue stood at Rs 2,115 crores in FY22 up from Rs 1,852 crores in FY21. In the same period, its net profit was at Rs 1,393 crores up from Rs 1,325 crores in the year-ago period.
The average five-year net profit margin of the company is 51.76%. From 2018 to 2022 their net profit margins were 40.48%, 48.59%, 63.01%, 71.56%, and 65.85% respectively.
The company is one of the largest AMCs in India and has a significant market share. It offers a large suite of savings and investment products across asset classes. The company also provides Portfolio Management & separately managed account services to HNIs, family offices, domestic corporates, trusts, provident funds, and domestic and global institutions.
Central Depository Services (India) Ltd
The shares of Central Depository Services Ltd inched up by 1.2 per cent and closed at Rs 1,263 on Thursday. In a month the stock has climbed by 7.2 per cent but so far this year it has shed approximately 17.5 per cent YTD.
The depository has been able to maintain consistency in its total revenue and net profit. In Fy22, the company had earned a total revenue of Rs 551 crores up from Rs 343 crores in the year-ago period. In the period, their net profit stood at Rs 313 crores up from Rs 201 crores from the previous year.
The average five-year net profit margin of the company is 46.06%. From 2018 to 2022 their net profit margins were 50.39%, 55.38%, 45.98%, 59.15%, and 63.58% respectively.
Central Depository Services (India) Ltd. (CDSL), is the first listed Indian central securities depository. Its main function holding and transacting securities in electronic form and facilitating the settlement of trades on stock exchanges.
Written by – Anoushka Roy
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
